Once; Twice; Four times a winner!
The Pound was rewarded overnight by traders in the New York and Asian sessions, pushing the UK’s currency back towards levels not seen for some 20 months. Today’s session initially drew limited support for the Pound given the fresh resistance levels that the UK currency approached overnight. Positively, this afternoon, a headline crossed terminals that Julian Smith, the British government’s enforcer, had informed parliamentarians that the Brexit agreement can be reopened if an agreement is created to produce legally-binding changes to the Irish backstop. The news decreased the headwind that the UK government would face in improving the extant Brexit deal. Base case outcomes were therefore revised upwards slightly, allowing the Pound to enjoy a renewed bid and finish four days out of the five this week comfortably in the Green. The US Dollar has struggled today, losing close to 0.5% on the day. The reason for the fall is the Federal Reserve which comes into focus once again next week. The Reserve will publish its next interest rate decision on Wednesday evening next week with the Reserve widely expected not to raise rates. The pressure on US interest rates in late-cycle economic growth is allowing the Dollar to slide against its international counterparts.
Discussion and Analysis by Charles Porter
Japanese Yen With JPY at a new 34 year low versus EUR, the market is set for an ambush by the Bank of Japan if it acts today at the end of their Policy Meeting to support the Yen. The reason that the market is susceptible is because it has convinced itself that the BoJ […]
Too soon to call USD lower Those following the US Dollar’s performance in the markets would have noted a recent downturn accelerating as this week has progressed. There have been two factors driving this sell-off but it is far from certain that either may endure long enough to push the Dollar index back to its […]
Milan, Italy The City of Milan has a late night noise problem and so it has acted unilaterally to resolve it-Italian style. A ban on the sale of take away food including ice cream and pizza after midnight is being imposed to protect the “peace and health of residents.” Here in the UK late night […]